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Answer: No, Chan has not violated any Standards.
According to **Standard VI(A) - Disclosure of Conflicts**, members and candidates must disclose all matters that could impair their independence or objectivity. However, since Chan has no beneficial ownership in her brother's account, she is not required to disclose his holdings. Therefore, she has not violated Standard VI(A). Additionally, **Standard V(B) - Communication with Clients and Prospective Clients** requires clear communication of investment recommendations, distinguishing between facts and opinions. Chan's report complies with this requirement, as it presents the necessary characteristics of the security. Thus, she has not violated Standard V(B). In summary, Chan has not violated any CFA Institute Standards of Professional Conduct.
Author: LeetQuiz Editorial Team
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Sharon Chan, CFA, is an analyst at an investment firm. Chan issues a "buy" rating on a company in which her brother holds shares. Chan does not disclose her brother's holdings in her report as she has no beneficial ownership in her brother's account. Has Chan violated the CFA Institute Standards of Professional Conduct?
A
No, Chan has not violated any Standards.
B
Yes, Chan violated the Standard regarding disclosure of conflicts of interest.
C
Yes, Chan violated the Standard concerning communication with clients and prospective clients.
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